Pepco Group reports improved trading in Q3
Jul 15, 2021
Pepco Group, owner of the Pepco and Dealz brands in Europe and Poundland in the UK, reported third quarter sales of 1,043 million euros and year to date sales of 3,038 million euros. On a LFL basis, the Pepco business reported 9.6 percent LFL growth year to date.
Commenting on the results, Andy Bond, CEO Pepco Group, said: “We made good strategic progress in the third quarter, with all three of our brands delivering a resilient trading performance as consumers continued to come back to Pepco, Poundland and Dealz, following the gradual easing of Covid restrictions. While the consumer backdrop is likely to remain volatile and challenging for some time, we remain confident in the strength of our customer proposition and the long-term growth potential for our business.”
Review of Pepco Group’s performance Pepco revenues increased 59.8 percent in reported currency and 61.1 percent in constant currency in the third quarter to 562 million euros, while Poundland Group posted constant currency revenue increase of 30.3 percent and reported currency revenue increase of 33.8 percent to 481 million euros.
Poundland Group posted current year LFL performance of 21.1 percent and year to date trading store LFL of 5.2 percent. The company added that Poundland’s revenue reflected strong performances across recently extended categories in clothing and homewares and the introduction of a new frozen and chilled offer to 42 stores in the quarter.
During the quarter under review, the company said, Pepco added 95 new stores with openings in all of its 14 current markets, including opening its first stores in Spain, its second Western European market. The programme to remodel existing stores continued with eight stores either enlarged or relocated. The roll-out of the Dealz format continued in Poland and Spain with 51 stores opened year to date and 24 in the quarter.
In the quarter, 24 Dealz stores were opened, increasing the portfolio by 53 percent versus the year-end position to 147. The company intends to open up to 70 new stores in the full financial year.